Category: M&A

Dutch insurer Aegon has completed its acquisition of a 49% stake in Mexican life insurance company Seguros Argos. The two companies have also signed an agreement to set up a pension fund management joint venture, to be called Afore Argos, which has received approval from Mexico’s pension regulator, Consar. Seguros Argos, which specializes in worksite marketing of its policies, is the seventh largest life insurance company in Mexico, in terms of individual life insurance policies.

Caribbean-based mobile phone operator Digicel Group yesterday, Thursday, completed the acquisition of Salvadorian mobile operator Digicel (unrelated) for an undisclosed amount. The acquisition of El Salvador’s fourth-largest mobile phone operator represents Digicel’s entrance into the Central American market and will serve as a springboard into the region, according to the company. The local unit will be headed up by Luis La Rocca.

Chilean retail group Centros Comerciales Sudamericanos (Cencosud), one of the largest companies in the sector, has finally closed its acquisition of local supermarket chain Supermercados Economax, which it bought for around $60 million from the Montrone family in July. The acquisition almost came undone when one of Chile’s anti-trust regulators, the National Economic Prosecutor (FNE), asked the Court of Fair Competition to temporarily suspend acquisitions by local supermarket chains Cencosud and D&S. However, in August anti-monopoly commission TDLC ruled the deal could go ahead.

Brazilian firm Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, is hoping to close the acquisition of Canadian nickel miner Inco by October 16, the date its offer expires. Last month, Inco’s board decided to back CVRD’s hostile offer of around $17.9 billion in cash after US mining concern Phelps Dodge Corporation ended its acquisition agreement with the Canadian firm. CVRD says it has secured $30 billion of financing from which to draw down approximately $18 billion needed for the acquisition.

Panama’s banking regulator has authorized the sale of Banco Atlántico by Spanish group Sabadell to local Grupo Financiero Continental. The acquisition, thought to be for around $96 million, was announced in July. Grupo Financiero Continental has assets of $3 billion and is one of Panama’s most important financial institutions. Banco Atlántico has assets of just over $500 million. Banco Sabadell originally took over Banco Atlántico Panamá when it bought Banco Atlántico de España in 2004.

Mexico’s largest fixed-line telecoms operator, Telmex, has received approval from Colombia’s telecoms regulator for its acquisition in August of Colombian cable TV company Superview. Telmex paid $42 million to gain access to Superview’s 150,000 registered users . Superivew offers cable television, internet access and remote residential security.

Credit Suisse is in talks to buy Brazilian investment bank Hedging-Griffo in a deal reported to be worth $300-$400 million. The Brazilian house, created in 1986 from the merger of two brokerage companies, has enjoyed huge success in recent years. It currently has around $6.6 billion under management.

Mexican mobile phone operators Iusacell and Unefon, both owned by local businessman Ricardo Salinas Pliego, are preparing to merge. The move aims to knock Spanish-owned Telefónica Movistar off the number two spot and will compete with the country’s largest operator, América Móvil, owned by Carlos Slim. The move to merge, which had been flagged as far back as three years ago, was prompted by the near-completion of Iusacell’s debt restructuring and Salinas’ move to take control of Unefon by buying out his partner in the venture, Moisés Saba Masri, for $300 million. Salinas also plans to buy the remaining 10% of the company’s stock, listed on the Mexican Exchange, via a public offering within the next 60 days to take the company private.

US mining concern Phelps Dodge Corporation has ended its acquisition agreement with Canadian nickel producer Inco, thus clearing the way for a hostile takeover by the world’s largest iron-ore producer, Brazilian firm Companhia Vale do Rio Doce (CVRD). Last month CVRD offered around $17.9 billion in cash for Inco, while Phelps Dodge made a similar friendly offer but payable in cash and stock. Despite a recommendation from Inco’s board to accept the Phelps Dodge offer, investors indicated they would reject it in favor of the cash option. They had been due to vote today on a course of action. Inco has paid Phelps Dodge a $125 million break-up fee and may be required to pay a further $350 million.